WESTROCK CO

44.41 +0.21 (+0.48%) Sell

WRK shows sign of weakness as investors do cost averaging

13 min read

WESTROCK CO ranked better than it's peers today. It delivered +0.48% to close at 44.41. During the last week it delivered -3.9% and saw a maximum drawdown of -4.35% before bouncing back.

[Themes containing WRK]

WRK is currently in a bearish trend. The current bearish signal has generated a profit of +20.0% for investors in the last three months.

Trend

WRK has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 12 Jan, 2018 to 22 Oct, 2018. Over the last 2 years 11 months and 8 days, WRK underperformed the SP500 index on 46% days. Which indicates that on days WRK underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months WRK was mostly loss making and delivered on average -0.33% per day. It's best return during this period (of +4.64%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -7.9%) was on Tuesday, 9 Oct, 2018. The longest stort-term trend during this period was 8 losing days, which started on 2 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -23.94% of investor capital.

The last 12 months saw WRK's investors making profits in 3 months and incurring losses in 9 months. WRK was less consistent in delivering monthly returs than SP500 index. WRK was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -19.83% compared to -7.28% returned by SP500 index in Oct 2018. WRK had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Feb 2018 to Jun 2018) during which period it delivered -11.86%. It is interesting to note that both WRK and SP500 index significantly outperform during months when quarterly/annual results are announced.

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WRK is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in WRK's volatility from 20 Sep, 2018 to 30 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that WRK has significant positive skewness in it's return distribution. This indicates that investors can expect WRK to recover from drawdowns quickly. Which makes WRK a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

SP500 index has more chance of extreme outcomes than WRK. Therefore, SP500 must receive a lower allocation than WRK in your portfolio. SP500 index usually has shorter drawdown period than WRK.

Based on your interest in WRK you may find it interesting to know that ICPT, VIPS and OPNT are all extremely risky investment candidates that must be evaluated carefully. Investors with low risk profile are better off avoiding them till their performance becomes more consistent.

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